Crypto news: U.S. Government Transfers $4M in Bitcoin to Coinbase, According to Arkham Data
On Monday, the U.S. government transferred 58.742 bitcoin (BTC), valued at nearly $4 million, to Coinbase (COIN), according to data from blockchain analytics firm Arkham Intelligence.
The transfer originated from an address labeled “U.S. Government: Ryan Farace Seized Funds,” identified onchain as 3B2jEBZi8fJWGEDrh6Pe7hDMaJ6iGfFtaU. These funds were seized three years ago from Ryan Farace, who was convicted in 2018 for selling Xanax pills on the dark web.
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Ryan’s father, Joseph Farace, was later convicted for laundering and trafficking bitcoin proceeds intended for federal forfeiture. The Department of Justice eventually recovered 2,933 BTC from the father-son duo and announced its intention to liquidate the holdings in January of this year.
This latest transfer, potentially aimed at liquidation, has emptied the Ryan Farace seized funds address. It represents less than 1% of bitcoin’s 24-hour trading volume of over $35 billion, according to Coingecko data.
As such, the potential liquidation through Coinbase is unlikely to significantly impact the spot price, unlike the recent large sale of BTC by Germany’s Saxony state. Saxony sold 49,858 BTC between June 19 and July 12, driving the token’s spot price as low as $53,500 at one point. As of now, the leading cryptocurrency by market value is trading at $67,450. Meanwhile, the U.S. government still holds over 213,000 BTC worth over $14 billion.
